C
chipmunn
Guest
I do not like the current state of US Airways or the position our employees find them self in, but in my opinion management will do whatever is necessary to survive this financial crisis.
As the clock ticks down towards US Airways filing its Plan of Reorganization now scheduled for December 9, listed below is an option on how pending management-union negotiations could pan out:
1. ALPA will reach an accord to place 70 and 78-seat RJs on the mainline as a separate division (that will not be included in the new 279 aircraft mainline fleet count), with the pay, work rules, and benefit’s the average of Atlantic Coast, Comair, and Continental Express. The pilots union will also agree to pension changes to prevent the PBGC from taking control of the fund. On December 2, the MEC will meet to discuss productivity and benefit change options, which will lead to a deal.
2. The AFA has already witnessed its productivity job loss due to the company going to minimum staffing. In addition, the flight attendants could have unilateral contract changes implemented due to its “me too†clause. If the AFA refuses to negotiate pension changes, the union could have its retirement fund terminated by the PBGC.
3. The IAM-M and CWA have witnessed some of their productivity cuts due to the TPA facility closings.
4. The three TWU units will reach accords.
5. The IAM-FSA and CWA have less to give and their situation is far less certain.
For the non-flight crew unions, if an individual union does not agree to productivity and benefit changes, the union could see the PBGC cancel their pension plan and if necessary, the court could impose contract changes, regardless of the S.1113 letter, if this is necessary for the company to emerge from bankruptcy. Has Judge Mitchell ever turned down a company motion?
The final board option would be fragmentation and then liquidation; however, if necessary, with cost savings from pension terminations, court imposed contract changes, and more layoffs; management has the hammers in place to obtain the required labor cuts necessary to qualify for the final credit facility payment, the loan guarantee, equity investment, and emerge from bankruptcy.
Chip
As the clock ticks down towards US Airways filing its Plan of Reorganization now scheduled for December 9, listed below is an option on how pending management-union negotiations could pan out:
1. ALPA will reach an accord to place 70 and 78-seat RJs on the mainline as a separate division (that will not be included in the new 279 aircraft mainline fleet count), with the pay, work rules, and benefit’s the average of Atlantic Coast, Comair, and Continental Express. The pilots union will also agree to pension changes to prevent the PBGC from taking control of the fund. On December 2, the MEC will meet to discuss productivity and benefit change options, which will lead to a deal.
2. The AFA has already witnessed its productivity job loss due to the company going to minimum staffing. In addition, the flight attendants could have unilateral contract changes implemented due to its “me too†clause. If the AFA refuses to negotiate pension changes, the union could have its retirement fund terminated by the PBGC.
3. The IAM-M and CWA have witnessed some of their productivity cuts due to the TPA facility closings.
4. The three TWU units will reach accords.
5. The IAM-FSA and CWA have less to give and their situation is far less certain.
For the non-flight crew unions, if an individual union does not agree to productivity and benefit changes, the union could see the PBGC cancel their pension plan and if necessary, the court could impose contract changes, regardless of the S.1113 letter, if this is necessary for the company to emerge from bankruptcy. Has Judge Mitchell ever turned down a company motion?
The final board option would be fragmentation and then liquidation; however, if necessary, with cost savings from pension terminations, court imposed contract changes, and more layoffs; management has the hammers in place to obtain the required labor cuts necessary to qualify for the final credit facility payment, the loan guarantee, equity investment, and emerge from bankruptcy.
Chip